Encana selling Louisiana assets for $850 million

Encana sells Haynesville natural gas assets for $850 million

NEW YORK (AP) - Energy company Encana Corp. is selling its Haynesville natural gas assets in Louisiana in northern Louisiana to GEP Haynesville LLC for $850 million.

The assets being sold include about 112,000 acres. Encana will use the proceeds from the sale to reduce debt.

GEP Haynesville is a joint venture formed by GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP.

Canadian-based Encana also said it will reduce its gathering and midstream commitments, which will be substantially complete through 2020, by about $480 million. It will transport and market GeoSouthern's Haynesville production on a fee for service basis for the next five years.

The sale of the natural gas assets is expected to close in the fourth quarter, Encana said.

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